Gold News

Gold Prices End the Week at $880 as US Stocks Drop 4%; Gold Mining Shares Fall 8%

From Chris Mullen at

Gold Prices rallied into the New York open on Friday before slipping from $885 per ounce the end the week 1.6% lower overall at $880.50.

Silver fell to $15.676 and rose to $16.26 before it also fell back off a bit, but it still ended with a respectable gain of 1.19% for the day and a 0.8% drop for the week.

The Gold Price in Euros rose to about €602 as the single currency lost 1.1% for the wek to $1.4625, and platinum lost $13 to $1545, palladium lost $2 to $366, and copper rose over 5 cents to about $3.24.

Gold and silver equities rose about 2% at Friday's open but gave most of it back by the close, ending the week more than 8% lower overall on both the HUI and XAU indices.

In the broader markets, crude oil traded mixed before ending Friday higher as worries over economic growth were overcome by short covering heading into the long weekend.

On the economic front, the US leading indicators report gave a reading of -0.2% for Dec., worse than expected but slightly up on Nov.'s -0.4%. The Bush administration meantime announced a series of tax initiatives and stimulus worth $150 billion in an attempt to extend the economic expansion into its seventh year.

The US Dollar index found slight gains on the plan, and Treasury bonds fell slightly by the close. But interest rates in the bond market remain close to four-and-a-half-year lows on the outlook for a cut of at least 50 basis points by the Federal Reserve at their meeting at the end of this month.

The Dow, Nasdaq, and S&P stock indices all fell as Bush's plan was announced, taking their losses for the week to more than 4% as uncertainty spread about the exact size and details.

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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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